As Malaysia's Economy
Grows, So Does Appeal
Of Islamic Extremism

By

Leslie Lopez and

Raphael Pura Staff Reporters of THE WALL STREET JOURNAL

Updated Nov. 7, 2003 12:01 a.m. ET

KUALA TERENGGANU, Malaysia -- During 22 years in power, former Prime Minister Mahathir Mohamad transformed Malaysia from a colonial-era rubber and tin exporter to an emerging industrial power, complete with a growing middle class, a new $6 billion high-tech administrative capital, the world's tallest office towers and a Formula One racing circuit.

Ethnic Malay Muslims, who make up about 60% of Malaysia's 24-million population, have been among the big winners -- thanks to aggressive affirmative-action policies designed to...